Varo Money, a renowned mobile banking firm, has reportedly announced that it raised $241 million from a Series D investment round led by the company’s present investor The Rise Fund as well as a new investor, Gallatin Point Capital. Other new investors, Progressive Insurance and HarbourVest Partners also participated in the investment.
Investment banking enterprise, J.P. Morgan operated as the sole placement agent for this transaction. The new funding would be used by the company to foster its growth and also help it innovate across a series of financial products to develop the financial resilience of Americans. Overall, the company has raised over $419.4 million and is slated to become the first and only completely digital bank to get a national charter.
The CEO and founder of Varo, Colin Walsh stated that the company was founded with an aim of making a strong impact on the issue of systemic financial inequality among communities in the country. As the country’s first entirely digital national bank, Varo would bring the goal of financial inclusion to reality and make communities more financially resilient, making them stronger and healthier.
Walsh further added that the new funding would allow the bank to complete its chartering process and also leverage its modern banking technology to create its own track record of inclusion and innovation.
Co-managing partner at The Rise Fund, Maya Chorengel stated that amid all the economic challenges faced by the population currently, the digital economy might still turn out a force that does good.
Chorengel further added that Varo’s commitment towards financial inclusion and the help it provides people to reduce financial stress by managing finances is highly important at a time when several American families are affected adversely by a volatile economy. This is also the reason why the company chose to invest in Varo.
Source credit: https://www.varomoney.com/press_release/varo_seriesd/